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GST to spur economic growth, say experts

Chandigarh28.05.16-: To clear industry’s apprehensions on the new GST regime of indirect taxation, PHD Chamber of Commerce and Industry in association with the Institute of Company Secretaries of India (ICSI) organised a seminar here on Saturday.

Kishori Lal, commissioner, central excise & service tax, Chandigarh, who was the chief guest at the event, said the country is taking a quantum leap in the field of indirect tax reforms with the introduction of the GST. “By amalgamating a large number of central and state taxes into a single tax, the government wants to curb double taxation and pave the way for a common national market. From consumer point of view, the biggest advantage would be in terms of a reduction in overall tax burden on goods, which is currently estimated at 25-30%,” he said.

“The GST will also make Indian products competitive in the domestic and international markets. Studies show this will instantly spur economic growth,” added Lal.

Bimal Jain, chairman, indirect taxes committee, PHD Chamber, said the GST will ensure ease of doing business. “It’s a significant step that will bring uniformity in the tax system apart from bringing more business opportunities,” he added.

Welcoming the participants, PHD regional director Dr Praveen Rathee said the interactive session has come at an apt time when both the government and industry are pushing hard for a speedy implementation of the Goods and Services Tax. “To achieve the double-digit growth, the GST is a must. The new system will not only do away with multiplicity of taxes and their cascading impact, it will also help in increasing the tax revenue for state governments,” he added.

Surjeet Bhadu, partner, BSM Legal, Chandigarh, said due to its transparent character, the GST will be of a great advantage for the common man, tax-payers, economy, industry and administration.

GS Sarin, chairman of Chandigarh Chapter of ICSI, said the GST seeks to address the challenges faced by the current indirect tax regime by broadening the tax base, eliminating cascading of taxes, increasing compliance and reducing economic distortions caused by inter-state variations in taxes.